 Contractors/Ins. claim (by Rangor [TN]) Sep 23, 2020 12:24 PM
 Contractors/Ins. claim (by Steve [MA]) Sep 23, 2020 12:50 PM
Contractors/Ins. claim (by Rangor [TN]) Sep 23, 2020 1:06 PM
Contractors/Ins. claim (by Rangor [TN]) Sep 23, 2020 1:06 PM
Contractors/Ins. claim (by Ken [NY]) Sep 23, 2020 1:07 PM
Contractors/Ins. claim (by Robert J [CA]) Sep 23, 2020 1:21 PM
Contractors/Ins. claim (by Steve [MA]) Sep 23, 2020 3:56 PM
Contractors/Ins. claim (by Rangor [TN]) Posted on: Sep 23, 2020 12:24 PM
Message:
When a contractor submits estimates to an insurance company are his costs typically rolled into those estimates or is it normal for him to have his 20% (10% overhead, 10% profit) line itemed out after the fact? I had a storm do about $30,000 damage back in April. I chose to divert some of the claims dollars from floor replacement (laminate only slightly curled on some pieces) to siding but after seeing the additional 20% added to the final bill there is not much left for siding. I know the same company (different contractor) did about $5,000 tree work and there was just an invoice showing the work done - no 10% overhead 10% profit add on. Input? --107.77.xxx.xx |
Contractors/Ins. claim (by Steve [MA]) Posted on: Sep 23, 2020 12:50 PM
Message:
The times that I as a GC have done insurance work, we provided an estimate & were paid according to the estimate. If during the course of the repairs additional or hidden damage was discovered most insurance companies authorize additional payment based on my documented costs plus a 10 & 10 markup which comes out to 21%. It's 10% for overhead & 10% for profit which is pretty standard in the insurance business.
If you chose to save & reuse some of the flooring they most likely held back a portion since you did not do the work. They do this to help prevent someone from submitting multiple claims for the same damages. It's similar to a car claim, if you don't prove that you actually did the complete repair they won't pay you for a future claim. --71.174.xxx.xx |
Contractors/Ins. claim (by Rangor [TN]) Posted on: Sep 23, 2020 1:06 PM
Message:
Thanks Steve. To clarify though the insurance company has not held anything back. They have paid based on an agreed upon estimate as well as paying the supplemental requests. My assumption was that the GC was getting paid out of this which is why I am surprised at the 20% markup now that he wants to settle up.Again, if that is the normal practice then it is on me to have known that up front. It doesn't sound, in your case, like that approach was normal for you. Thanks. --107.77.xxx.xx |
Contractors/Ins. claim (by Rangor [TN]) Posted on: Sep 23, 2020 1:06 PM
Message:
Thanks Steve. To clarify though the insurance company has not held anything back. They have paid based on an agreed upon estimate as well as paying the supplemental requests. My assumption was that the GC was getting paid out of this which is why I am surprised at the 20% markup now that he wants to settle up.Again, if that is the normal practice then it is on me to have known that up front. It doesn't sound, in your case, like that approach was normal for you. Thanks. --107.77.xxx.xx |
Contractors/Ins. claim (by Ken [NY]) Posted on: Sep 23, 2020 1:07 PM
Message:
You should be dealing with the insurance company directly and then you pay the repair company,dont let the repair person talk to the insurance company otherwise the repair guy will get all the money the insurance company is willing to pay.You get the $30000 from the insurance company then you repair guy hopefully a lot less to actually do the repair --104.229.xxx.xxx |
Contractors/Ins. claim (by Robert J [CA]) Posted on: Sep 23, 2020 1:21 PM
Message:
I am a contractor with many trade licenses and have done lots of insurance work. To answer you question it all depends.
Many time the insurance company want to make progress payments for different phases of the work completed. Also the insurance companies make the check payable to the Home Owner, The Mortgage Company and also the Contractor.
This is a big problem for me. After the Bel-Air fire a number of years ago, the insurance companies got hard hit and had to pay Billions. So they asked me to go ease on my estimates. I made a deal with them. If I stick to the cost plus 18%-20% rule, they would cut me a check quickly so I could complete the job in 2 months or less.
Then the insurance company changed their minds. They made the check payable to the SBA (Small Business Administration), the owner, the mortgage company and myself. To get each named party to sign the check with an endorsement guarantee, would take 3 months per check.
My contact read, after two weeks of work, a bill will be submitted for review and payment. Then after 30 days, contractor not receiving payment may "Walk away from the job until the owner or insurance company makes the due progress payments". So this 2 month job took 2 years.
The owner lied and signed an additional clause, they would "Bank" the payments because I couldn't wait months for payment working on a 20% profit.
So now I no longer put up with insurance checks made out to a list of characters. I will be the final signer of the check, but this is an endorsement and the owner has to bank the check and cut me the funds from their own monies. --47.155.xx.xxx |
Contractors/Ins. claim (by Steve [MA]) Posted on: Sep 23, 2020 3:56 PM
Message:
Rangor, unless your written contract / written agreement states that the contractor will be marking up his estimate, I doubt very much that they are entitled to now decide to add 20% to your bill. However if this 20% is only on the additional work & not the work outlined in the original agreement then yes they might very well be entitled to a 20% markup on that just portion of the project.
Now whenever we agree to to insurance work my contract states that we are working for the property owners & not the insurance company, bank or mortgage holder. If they don't have proof of funds to pay me per my billing schedule then we won't take on the project. I've always been a firm believer in staying home & not making money then going to work for someone & losing not only money but my time as well. --71.174.xxx.xx |
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